The latest edition of the Short Interest Monitor features a unique mix of companies, including tech firms, pharmaceutical companies, retailers, and more.
Reddit (RDDT) made the Short Interest Monitor list for the first time amid concerns that AI-powered search is hurting referral traffic to the platform. The social media company turned in strong second-quarter earnings this summer, with revenues surging 61% from a year ago, while net income more than doubled. But short sellers may have targeted the company last month amid reports that it's considering ending its lucrative data licensing partnership with Google. The European Union also officially classified Reddit as a Very Large Online Platform (VLOP) under the Digital Services Act on August 31, subjecting the company to stricter anti-risk assessments and compliance rules. Reddit shares popped after it was marked for inclusion in the S&P 500® Index in early September, but the stock was still down more than 35% year to date through October 12.
Short sellers also targeted SoFi Technologies (SOFI) in September amid rising Treasury yields and high interest rates. Higher rates can weigh more heavily on digital lenders because they rely on short-term funding rather than low-cost deposits like traditional lenders. While SOFI posted record growth and profitability in the second quarter, with revenues rising 43% from a year ago and adjusted EBITDA jumping 43% over the same period, guidance spooked some investors. The fintech giant raised its revenue outlook but held its earnings per share (EPS) forecast steady. CEO Anthony Noto told CNBC the prospect for further rate hikes was one main reason for the soft guidance. SOFI also continues to face pressure from a Muddy Waters short-seller report that came out in March.
Finally, lululemon athletic (LULU) attracted short sellers last month amid slumping sales, rising competition, and macroeconomic headwinds. The athleisure brand revealed in early September that its revenue dropped 4% from a year ago in the second quarter and its global comparable sales sank 9% year over year. The drop came even as a one-time tariff refund helped buoy the top and bottom line. Management also slashed its full-year 2026 guidance in its second-quarter report, forecasting a 5% to 7% revenue decline. LULU shares were down more than 55% year to date through October 12.
The table below shows the complete Short Interest Monitor, which features 10 equities with elevated and rising short interest. Each stock has a market cap of at least $2 billion and short interest that represents at least 10% of its outstanding shares.